Waddington is in the market for $650 million in loans, Moody’s says. Proceeds will be used to fund its buy of Par-Pak and to refinance debt, the report says.
Par-Pak had roughly $305 million debt before the deal; Waddington is raising about $295 million in new debt to fund its buy of company, the source says. Existing shareholders, including Olympus Partners, are injecting new equity into the deal, the person says. Par-Pak’s owners are also rolling over some of their equity, the person says. The deal has yet to close.
Brampton, Ontario-based Par-Pak designs and makes rigid plastic packaging. The company holds a leading position in plastic container packaging for the bakery industry in Canada, Moody’s said.
The deal is one of the first for Waddington, which Olympus acquired in November. The Covington, Kentucky-based company makes foodservice products such as disposable plastic plates, cups and cutlery, for the catering, institutional and consumer sectors. Olympus invested a little more than $100 million in Waddington, peHUB has reported. LBO Wire, which first reported the Par-Pak buy, said the purchase price is more than $300 million and Olympus is injecting $100 million fresh equity to finance the deal.
Waddington also bought Eco-Products in November.
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